The Reserve Bank of India (RBI) has introduced revised norms for entities dealing in foreign exchange, under which fresh licences for full-fledged money changers (FFMCs) will no longer be issued.
The new framework, titled the Foreign Exchange Management (Authorised Persons) Regulations, 2026, aims to streamline the authorisation and renewal process for authorised persons while expanding the principal-agent model for forex services with necessary checks and balances in place.
In a statement issued on Wednesday, the RBI said it had reviewed the existing framework under the Foreign Exchange Management Act (FEMA), 1999, to improve the delivery of foreign exchange services and ease compliance requirements for entities operating in the sector.
Under the revised regulations, all entities undertaking foreign exchange transactions must obtain authorisation from the RBI. The norms also introduce updated guidelines for different categories of authorised dealers.
Banks will continue to apply under Authorised Dealer (AD) Category I, while NBFCs, existing FFMCs, or forex correspondents operating for at least two years with an average annual forex turnover of Rs 50 crore during the previous two financial years can apply under AD Category II.
Certain entities planning to offer innovative products and services involving foreign exchange transactions will be considered under AD Category III.
The RBI clarified that fresh applications for authorisation as FFMCs will not be considered, except for those already under process before the regulations came into effect on April 30.
The regulations further state that entities seeking authorisation must be companies incorporated under the Companies Act, 2013, and must meet the minimum net worth criteria specified by the RBI.
👉 Click here to read the latest Gujarat news on TheLiveAhmedabad.com